In the very recent past, he was constantly being asked to justify his stance in State Bank of India. In 2007, he decided not to own real estate or power utilities but purchased FMCG, pharmaceuticals and automobiles. A brazen move, after all those who dared to do so saw their funds trail a market fueled by schizophrenic valuations. In the late 1990s, he and Chandresh Nigam (now CEO at Axis Mutual Fund) were pilloried for passing by technology stocks and focusing on old-economy stocks. But if he finds those stocks’ valuations out of whack with fundamentals, he opts out of the party. He always looks to buy reasonably managed businesses, of reasonable quality, which offer relative or absolute growth. Prashant is not contrarian for the sake of being contrarian rather his stance is a derivative of his strategy. And Prashant’s disciplined and rational approach to investing did have the virtue of reasoned logic, which convinced us to hold onto our rating. But the ingredients for good judgement can be defined. Whether a judgment is worthwhile cannot be known with certainty when making the call. ( Why we continue to believe in HDFC Equity and HDFC Top 200). This article has been written by Larissa Fernand, Editor of Morningstar.in, and Himanshu Srivastava, Senior Fund Analyst.Įnd 2015, when we decided to maintain our Gold rating on Prashant Jain’s funds, we faced severe criticism pointing to our “faulty judgment” in the face of the poor performance his funds put up that year.
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